updated 05:35 pm EDT, Wed July 5, 2006

Lawsuits against Apple

Apple today announced that it has been notified of derivative lawsuits filed in the United States District Court for the Northern District of California and the Superior Court for Santa Clara County. Both suits make claims against current and former officers and directors with respect to the company's awarding of stock option grants. Last week, Apple proactively announced that it had discovered irregularities in the issuance of certain stock option grants and is conducting an independent investigation into the matter. The company is currently evaluating its response to the lawsuits.

Like I said

Apple is plagues by idiots and failures in life that have nothing better to do but try and desperately beg for a buck in court. Hopefully, the courts will throw this bullshit out so we can all move on.

That's right

Its all the investors faults for Apple's issues with their stock grants, which, BTW, could have cost the company a bundle in the bottom line while falsely pushing up the company's stock price.

Yeah, damn investors! (of course, it sounds like its derivative investors, which, if so, I doubt that their the general failures and idiots you're always whining about).

Of course someone had to file the lawsuit. Most people would wait for the investigation to be complete. But in the class-action world, first in gets biggest cut, while everyone else gets coupons! Not that this has stated class-action status, but you've got to start somewhere...

BTW, not that there's any link here, but there's no mention of what they're suing over, certainly no mention of money.

The reality is

The only reason this lawsuit exists is to make the lawyers richer. This can be seen by the fact the lawsuit was filed so early. Before the investigation is complete, a plainitiff cannot prove any damages, which is essential for such a lawsuit. A lawyer, however, wants to sue first so they get paid. If somebody else beats them to the punch, they are out of luck.

PS

By the way, the article clearly states this is a derivative suit. Accordingly, there can be no class-action suit. A derivative suit is one where a shareholder is asking the court to force the company to sue its own directors and officers to recover any damages incurred through their actions. Derivative suits are hardly ever successful. Moreover, the Plaintiff receives no money if successful, only legal fees. That again should tell you why the suit is being filed.

Moreover, if successful, Apple will have to essentially pay damages to itself because for mistakes like this the company likely is contractually obligated to ideminify its directors and officers for any legal liability incurred.